Wholesaling-how exactly does it work?
Contractor · Chicago, IL · Member since 2017 · 102 posts · 181 votes
Wholesaling-how exactly does it work?
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Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
7y@John Thedford You seem to talk so much about these “uneducated sellers” and how wholesalers are taking advantage of them, stealing their equity ect. I just want to point out a few things, because you seem to make a habit of posting in wholesaling forums...if you disagree with it or dont like it then why are you here in THIS forum? I am not a Trump supporter so you know what I dont do? Post my opinions in Pro-Trump forums/chats/facebook groups etc!
Secondly 99% of the sellers out there obviously know what the MLS is because Im pretty sure thats how they bought the home that they are selling in the first place! And they also probably used an agent to buy it! So the argument that these people are ignorant and uneducated doesnt hold up! They are making a conscious decision to not work with an agent. Perhaps they dont want to pay someone(and in some cases 2 someones) a percentage of their proceeds to sell a house that only an investor would buy anyway.
Yes I am aware that there are some bad apples that do some shady things and those individuals should be singled out and face consequences for their actions, but what you should NOT do is vilify an entire group because of the actions of a few. And because I am here to be part of the solution and not the problem I am here giving advice to newbies on how to do things properly and ethically!
I left the corporate world because I was tired of someone else telling me there was a ceiling on my income. Just because you chose to be bound by a 3% commission doesn’t mean that is the right decision for everyone. That doesn’t give you the right to come here and discourage people who are just starting out. Please go spew your venom elsewhere!
152 Replies
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
Originally posted by @Tom Gimer:
Originally posted by @John Thedford:
When you see "subject to my partners approval" or 30, 45 days "inspection periods" these are typical FRAUDS AND SCAMMERS that entered into the contract under fraudulent reasons.
Have to disagree. I will always include an inspection contingency / study period to protect myself... with a duration in excess of what should be necessary to complete the due diligence.
Tom you aren't typical:)
- Real Estate Broker · Olympia, WA · Member since 2016 · 79 posts · 55 votes7y
@Tom Gimer In response to your "LOL"... keep reading the statute beyond only the first section that you quoted. The statute is not divided, it's all one long statute, meaning the second part of the statute directly relates to the first part. The first section you quoted asserts that the burden of proof would be on the wholesaler to show that they were not acting or attempting to act as a broker (which again requires doing deals for another and for compensation, i.e. as a service). The second part of the statute is in there to declare that all real estate contracts produced to meet this burden of proof that do not show 1) "good faith" and 2) "for a substantial consideration," both of which are standard introductory elements of a correctly drafted real estate contract, are "void and ineffective in all cases, suits, or proceedings had or taken under this chapter." In other words, no DIY contracts allowed.
Therefore, in order to meet the burden of proof created by this statute which is to show that one was not acting or attempting to act as a broker, all a wholesaler would have to do is produce a copy of the correctly drafted and executed real estate contract with his or her name on it as the buyer "and/or assigns" (or with an element that specifically allows for assignment). I stand by my initial evaluation, but again, I am not licensed to practice law in Florida or anywhere else.
@Bill F. I chose my words carefully when I said, "Florida code does not restrict proper wholesaling," I specifically did not say "law". No cases were presented, only statutes. You are right that my opinion is useless, which is why I asked for evidence from those making the claim for us all to evaluate. Nobody cares what I think, but I hope we all care what the answer is to this question. Getting licensed might actually be a good solution here, as you suggest, to avoid having to go to court in the first place. So, thank you for bringing an answer, but why the sarcasm?
- 7yTom GimerBusiness MemberDMV · Member since 2017 · 3k+ posts · 3k+ votes
Originally posted by @Andrew Hodgson:
@Tom Gimer In response to your "LOL"... keep reading the statute beyond only the first section that you quoted. The statute is not divided, it's all one long statute, meaning the second part of the statute directly relates to the first part. The first section you quoted asserts that the burden of proof would be on the wholesaler to show that they were not acting or attempting to act as a broker (which again requires doing deals for another and for compensation, i.e. as a service). The second part of the statute is in there to declare that all real estate contracts produced to meet this burden of proof that do not show 1) "good faith" and 2) "for a substantial consideration," both of which are standard introductory elements of a correctly drafted real estate contract, are "void and ineffective in all cases, suits, or proceedings had or taken under this chapter." In other words, no DIY contracts allowed.
Therefore, in order to meet the burden of proof created by this statute which is to show that one was not acting or attempting to act as a broker, all a wholesaler would have to do is produce a copy of the correctly drafted and executed real estate contract with his or her name on it as the buyer "and/or assigns" (or with an element that specifically allows for assignment). I stand by my initial evaluation, but again, I am not licensed to practice law in Florida or anywhere else.
@Bill F. I chose my words carefully when I said, "Florida code does not restrict proper wholesaling," I specifically did not say "law". No cases were presented, only statutes. You are right that my opinion is useless, which is why I asked for evidence from those making the claim for us all to evaluate. Nobody cares what I think, but I hope we all care what the answer is to this question. Getting licensed might actually be a good solution here, as you suggest, to avoid having to go to court in the first place. So, thank you for bringing an answer, but why the sarcasm?
LOL
Again. Because you initially ignored the statute that is at the center of the controversy... and I quote:
"Next up, the other statute FL 475.43 is not relevant to wholesaling."
... and now it is the basis for your position.
Having reviewed the available materials, I disagree with your analysis.
Gimer Law516 Reviews - Specialist · Little Rock, AR · Member since 2015 · 95 posts · 149 votes7y
Hi Meryl,
Thought I would add my two cents worth. @Lydia R. is spot on and a good representative of the industry, in my opinion. What we do is solve problems. We usually solve problems that realtors and others can't solve or won't solve. Houses that need major repairs are examples of what realtors have a hard time selling because nobody can get a bank loan as is, unless it's an investor who has credit lines or cash of their own.
I look at it this way and train beginners to shift their mindset to this.
If you had a 4 year old child with an inoperable brain tumor and the hospital said sorry he was going die, but before you gave up you researched and found two doctors in another state who had come up with an experimental surgery that has been successful. I am sure you would go. One doctor was older and pioneered the surgery and had done about 20 of them. He charges $60,000 to do it. The other doctor is younger and new but trained under the other doctor and has done 2 surgeries but only charges 30,000. Which doctor are you going to take your child to? If you are like most people I would do whatever I had to do to come up with the 60,000 to make sure my child survived.
We as good wholesalers have specialized knowledge and training and EXPERIENCE to help people solve their issues. No one else is solving the issue for them. Not realtors. Not other family members. Not the government. Just us. We get paid for our expertise. Never feel guilty about getting paid for your services that you have spent time and money learning, just like the doctor did in med school.
I routinely get hugs after closing with a motivated seller. Recently I got and hug and kiss from a lady who had a bad case of Lupus and after 5 delayed closing dates because she couldn't get out of bed on those dates , We got it closed. The morning of closing she called and told me she was going to make she thought. I told her I knew that already and that there was a rumor that Santa had made a surprise visit to the title company and had left some Godiva Truffles for someone. She laughed. When she arrived there was a box of 8 truffles at her position at the table. She wobbled in with her two crutches and sat. Didn't even notice them. Afterwards the title closer told her not to forget her box. She laughed and opened them. She struggled to stand and wobbled to me and hugged me and with tears in her eyes and told me I probably extended her life by at least 5 years by getting the stress of rental property off her hands that she had inherited. The title lady was crying and I had tears too. The title lady ( who was the owner of the company) said afterwards, "Now I get what you do."
We help people that no one else can or will!
- Real Estate Broker · Olympia, WA · Member since 2016 · 79 posts · 55 votes7y
@Tom Gimer What did I ignore? The statute does not address wholesaling, it addresses unlicensed brokering. You could say that my initial evaluation was brief, fine, but it was not inaccurate nor did I ignore aspects of the statute when I wrote my conclusion.
My entire last response to you unpacked exactly how the statute is not relevant to wholesaling. It's cracking down on unlicensed brokering, not wholesaling. That seems to be a key area of misunderstanding here, the distinction between proper wholesaling and unlicensed brokering. The only thing that statute does is establish a burden of proof that someone practicing unlicensed brokering would not be able meet. Any wholesaler acting properly would be able to meet that burden of proof easily. That is why my initial evaluation spoke of equitable interest being the key, which I still stand behind.
You also claim to disagree with my analysis; please provide yours.
- 7yTom GimerBusiness MemberDMV · Member since 2017 · 3k+ posts · 3k+ votes
@Andrew Hodgson On this very site are threads already addressing this issue. In one you will find that 2-3 years ago, several BP members and other interested parties met with the enforcement division of the FL REC to discuss the wholesaling topic. If I recall correctly, the rep from the state brought one exhibit handout for the group -- FL 475.43.
Your analysis is wrong not because it was brief but because it was incredibly simplified. You subscribe to the "I'm selling paper so I am outside the scope of the statutory framework" theory. That doesn't fly in FL, in my opinion... because we both know that nobody is advertising the paper, they are shopping the deal based upon an address, specs and ARV. Not only are they advertising a property they do not own, in violation of the statute, they are offering for sale an "interest" in real estate... see 475.01.
Wholesaling, the way it was initially raised in this thread by the poster which inspired my initial comment (a non-licensee putting a property under contract and then assigning that interest for a fee), is the definition of unlicensed brokerage in FL. I reject your attempt to suggest that we are talking about two different subjects.
You'll notice also that FL does not use the term "equitable title" anywhere in this section of the law, even though it is a well recognized concept in the state. If you'd like to bore any remaining readers, I'm happy to get into this further as to whether a sales contract with "[Buyer] and/or assigns", with a $10 EMD, a 30 day close and a 30 day contingency establishes an equitable interest at all.
Gimer Law516 Reviews - Real Estate Investor · Fayetteville, NC · Member since 2017 · 9 posts · 2 votes7y
Mark S. I never said anything about wholesalers are the only ones who can close quickly. A lot of strategies involve a quick close.
- Real Estate Broker · Olympia, WA · Member since 2016 · 79 posts · 55 votes7y
@Tom Gimer Thank you for your measured response, I appreciate your willingness to take the time to engage on the issues with me on this in pursuit of an answer. I appreciate you. I don't know if anyone is still reading this, but I hope that it helps someone-- even if it is only to help them fall asleep from boredom.
I want to start by looking at your rejection of wholesaling and brokering being two different subjects. You say, "Wholesaling, ... (a non-licensee putting a property under contract and then assigning that interest for a fee), is the definition of unlicensed brokerage in FL." How could that possibly be true? The distinction between wholesaler and broker is created by the very definition of broker in FL 475.01, where the very first requirement is acting "for another." "'Broker' means a person who, for another, and..." And, not or, meaning everything that follows in the statute is moot without "for another". This "for another" requirement establishes a legal distinction between brokering and wholesaling. It's not my assertion or suggestion, it is right there in the definition.
Remember, a wholesaler is party to the contract as the buyer. Being party to an executed legal contract is precisely what grants the wholesaler (as the buyer) interest. That interest is rightfully theirs to assign, if the contract allows for assignment. Brokers, by contrast, are limited to acting only as facilitators of the transaction, rendering that service on behalf of their clients, i.e. "for another." Brokers of a transaction are not party to the real estate contract itself.
Assignment is not brokering. The assignment of one's interest is an action the assignor must choose for themselves, as evidenced by the need to execute a separate assignment document with the assignee to transfer the interest. A broker cannot do that. If the broker signed that assignment document, it would be completely useless as it accomplishes nothing. Assignment is fundamental to contract law in our country. It would be massively important precedent if indeed Florida is restricting wholesaling, because it would actually be restricting assignment. That's why I care so much about this. So far, all the evidence that has been presented shows only restrictions on unlicensed brokering, and that's it.
Lastly, I can agree with your view that, "nobody is advertising the paper..." etc. The majority of wholesale transactions happening in real life may well be just as you say. However, yours is a description of how people are doing it wrong. I am trying to explain how it is supposed to be done correctly. I am not advocating for unlicensed brokering nor would I ever defend those who do. I am advocating that wholesalers learn how to wholesale properly.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
The "wholesalers" propaganda is getting deep. Check out this thread:
https://www.biggerpockets.com/forums/549/topics/65...
Here is a victim of another one:
https://www.biggerpockets.com/forums/93-wholesaling/topics/505122-memorandum-and-release-of-lien?page=1#p3095432 - Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
The Division of Real Estate is seeing an uptick in cases involving two types of cases involving long-term home ownership: Wholesaling/Assigning Transactions and Distressed Rescue Transactions.
Wholesaling/Assigning TransactionsInvestors and real estate brokers are targeting people with home ownership of over 20 years. This targeting translates to people over the age of 50 who are close to paying down their mortgage and holding equity in their property. The investor will offer the following:
- Cash transaction;
- A quick sale closing with no inspection; and
- You can leave behind any items you don’t want.
The problems begin when the homeowner is elderly, alone, and doesn’t know the true market value of their property:
- They may have purchased their property over 20 years ago for $50,000, $100,000, or maybe $200,000.
- That same property now could have a market value of $300,000, $400,000 or even $500,000.
- The idea that they purchased the property 20 years ago for $120,000 and are now being offered $220,000 sounds appealing to these homeowners – their mortgage might be paid off and they will make $100,000 – sounds good right?
- They don’t realize that an investor or real estate broker who knows the true market value of the property may be taking advantage of them by actively misleading the homeowner as to the true market value.
The problems arise when the investor or real estate broker:
- Drives down the property value in the seller’s mind by showing them comparable properties that aren’t really comparable.
- Talks to the homeowner about all of the deferred maintenance that the property needs (which may or may not be true).
- Allows the homeowner to leave items behind (What is that “convenience” worth - the costs of renting a dumpster, hiring two-three workers for a day to unload your house? Is it worth a homeowner giving up $20,000 - $50,000 - $100,000 – or more of their equity?)
- Fails to tell the homeowner that they are actively marketing the property for market value and that the investor or real estate broker plans to assign their rights in their contract with the homeowner to another investor/buyer.
- Fails to tell the homeowner that they intend to make a profit by accomplishing an assignment of the contract.
- Fails to tell the homeowner when the contract is assigned to a different investor/buyer.
Below is an example of a case that we investigated where the broker involved in the deal was referred criminally and her real estate license was revoked.
The victim had the misfortune of being on her front porch when an “investor” and his real estate partner approached her and told her they used to live in the neighborhood and wanted to move back.
They figured out her weaknesses and used them against her.
- After “working” on her for a few days, the investor and real estate agent had a meeting with her that lasted hours. At the end of the meeting they had talked her into a purchase price of $200,000 for a property she didn’t even plan on selling.
- At the same time, they had already assigned the contract to a second investor for $300,000 – with the agreement that the second investor would pay a $100,000 assignment fee to the original investor and real estate broker.
- The second investor sold the property to a third investor for $360,000 two weeks after the closing.
- Finally, the third investor held the property for eight months and sold it for $520,000.
That wouldn’t happen to any of us right? Think again. This type of thing can happen to anyone – young, old, rich, poor, no education, or highly educated. The reason it works is because people who perpetrate fraud are good at what they do – separating you from your money.
- Unfortunately, some of our victims became victims because they responded to an unsolicited mailer, phone call, or knock on the door. Once the “investor” makes contact with someone, they start “working” on them. They are professionals at getting close and gaining trust.
- They are charming and know how to obtain information about you that will help in their dealings with you. In just a few short conversations they will find out private information about you and then use it against you.
- Be wary if someone approaches you about something you weren’t even thinking about doing.
- If you want to sell your property, you should contact someone you have been referred to by family, friends, or do research on real estate brokers working in your neighborhood.
- Go to our website and see if the person has a real estate license and if they have any disciplinary history – dora.colorado.gov/dre
- Go to the City and County of Denver website to check on neighborhood sales – denvergov.org
- Click Search Property Information, then enter your address and click Search. In the Results link click on your address where there are various tabs and click on Neighborhood Sales.
- If you have a hard time with technology, you can always ask friends or family members to help you navigate the web to do some research about property values in your area.
If you do find yourself entertaining an offer from an unsolicited investor:
- Ask to obtain, and keep, a list of the comparable property sales in your neighborhood the investor used to come up with their purchase price offer.
- Always keep someone else in the loop – your children, good friends, or someone you trust.
- Always know that you can seek legal advice – in the end, it might be worth the money you spend on a consultation with an attorney.
- Review the contract closely to see if it is assignable. Inquire into why it is assignable, for instance: to whom it is assigned and why, and how much the new buyer is paying the original buyer - AKA – an assignment fee.
- Do not sign an assignable contract until you have had the opportunity to investigate the true value of your property and the legal implications with an attorney.
- Take responsibility for being informed about the value of your property and the contracts that you areconsidering signing.
Investors and real estate brokers are approaching distressed homeowners (those behind in their payments, facing foreclosure, or experiencing a medical issue). They offer the homeowner an “out” by agreeing to make the mortgage payments for them.
Problems arise when the investor does not explain how this will be accomplished. The unscrupulous investor will:
- Have the homeowner sign a Quit Claim Deed in which the homeowner signs over their ownership in the property.
- Fail to explain to the homeowner that they, the homeowner, are still responsible for the mortgage.
- Fail to warn the homeowner that they could be violating their “due on sale clause” with their lender.
The homeowner is usually elderly or part of an at-risk population (English isn’t their first language, disability of some kind, etc.).
The Division advises the following when it comes to these types of rescue transactions:
- Don’t sign any documents or a deed to anyone until you have had a chance to talk with your lender and an attorney about your mortgage obligations and your legal rights.
- Colorado has a Foreclosure Protection Act that affords you certain rights when you are financially distressed.
- It’s best to take proactive steps when you first start having financial problems, and here are some resources that you can contact:
- Colorado Housing Connects – Colorado
Foreclosure Hotline – - Colorado Bar Association “Find-a-Lawyer” –
- Colorado Legal Services –
- Disability Law Colorado (Formerly The Legal Center for People with Disabilities and Older People) –
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
Advice from an unlicensed broker:
"You give yourself a closing date 30 days from the date you sign the contract, give yourself a way to either back out of the deal or extend the closing date in the event that you cannot find a buyer. If it is a good deal it will not take long to find a buyer" - 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Andrew Hodgson thats because wholesaling is just a moniker just like turnkey is a moniker.. but we know what i means.. wholesaling means assigning contracts.. when in fact a true wholesaler closes on the house then resells what they own.. a broker makes a middle man fee.
the issue is you show me one wholesaler and we will use this interchangeable as assignor.. that just advertises a contract and does not describe the home have a website with pictures of hte homes mass media marketing all sorts of things that is exactly what a realtor does. And working out problems that's laughable most of the folks have zero experience to work anything out.. LOL.. Good brokers have their cash buyers.. I am one..
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Andrew Hodgson:
@Tom Gimer Thank you for your measured response, I appreciate your willingness to take the time to engage on the issues with me on this in pursuit of an answer. I appreciate you. I don't know if anyone is still reading this, but I hope that it helps someone-- even if it is only to help them fall asleep from boredom.
I want to start by looking at your rejection of wholesaling and brokering being two different subjects. You say, "Wholesaling, ... (a non-licensee putting a property under contract and then assigning that interest for a fee), is the definition of unlicensed brokerage in FL." How could that possibly be true? The distinction between wholesaler and broker is created by the very definition of broker in FL 475.01, where the very first requirement is acting "for another." "'Broker' means a person who, for another, and..." And, not or, meaning everything that follows in the statute is moot without "for another". This "for another" requirement establishes a legal distinction between brokering and wholesaling. It's not my assertion or suggestion, it is right there in the definition.
Remember, a wholesaler is party to the contract as the buyer. Being party to an executed legal contract is precisely what grants the wholesaler (as the buyer) interest. That interest is rightfully theirs to assign, if the contract allows for assignment. Brokers, by contrast, are limited to acting only as facilitators of the transaction, rendering that service on behalf of their clients, i.e. "for another." Brokers of a transaction are not party to the real estate contract itself.
Assignment is not brokering. The assignment of one's interest is an action the assignor must choose for themselves, as evidenced by the need to execute a separate assignment document with the assignee to transfer the interest. A broker cannot do that. If the broker signed that assignment document, it would be completely useless as it accomplishes nothing. Assignment is fundamental to contract law in our country. It would be massively important precedent if indeed Florida is restricting wholesaling, because it would actually be restricting assignment. That's why I care so much about this. So far, all the evidence that has been presented shows only restrictions on unlicensed brokering, and that's it.
Lastly, I can agree with your view that, "nobody is advertising the paper..." etc. The majority of wholesale transactions happening in real life may well be just as you say. However, yours is a description of how people are doing it wrong. I am trying to explain how it is supposed to be done correctly. I am not advocating for unlicensed brokering nor would I ever defend those who do. I am advocating that wholesalers learn how to wholesale properly.
Andrew I am a west coast broker like you CA OR and my wife is WA.. and this subject gets batted around on BP a lot .. so I got tired of all of all the speculation .. So I simply forwarded a few copies of E mails I got from NON licensed wholesalers.. these are marketing pieces exactly how U would send them out to other agents.. picture of house description sq foot.. price to buy it and contact info. quick call over to customer service at WFG I get a trio this wholesaler obviously does not own the property.. quick search on dept of real estate shows he was licensed but is now not.. So I sent it to our state to tell me what they think.. and below is the answer I got.. the state interviewed me in person.. has opened a case on this wholesaler.. and is just about to come out with a finding.. will forward that when I get it.
but read the e mail I got below here it sometimes paste's backwards.
State of Oregon - Real Estate Agency
Frances Hlawatsch | Financial Investigator
Best regards,
Thank you again for the information, if I have further questions for you during the investigation I will certainly reach out.
The Agency is well aware that unlicensed “wholesalers” are rampant in our jurisdiction. Addressing the problems is like trying to put out small individual fires in a forest that is burning. The Agency’s investigations are complaint driven, so we rely heavily on the public, and our licensees to bring these individuals to our attention.
Thank you for getting back to me. The advertising copy you attached to your email came out perfectly and will be very helpful. Thanks!
Hello Jay,
In addition in OREGON I have a few bird dogs that bring me deals and one of them specifically got turned in by a neighbor to the state when he put a forsale sign in the yard.. the neighbor it was apparent wanted the house.. he knew my guy did not own it.. and filed a complaint for unlicensed activity my guy got nailed and its about like a DUII it cost him about 10k.. and a lot of stress. and he got a cease and desist. Further more when talking with the State of Oregon investigator they don't buy the equitable interest theory as your stating.. not when the sole purpose of the business is to go into contract not close and just act like a broker.. making assignment fee's and putting the houses on websites and mass marketing them.. Now will this curtail this activity heck no.. just like she said its rampant. you cant have wholesaling guru's charging these people 10 to 30k to learn how to wholesale and never mention its illegal in most if not all states.. those statues read virtually verbatim from state to state..
And I said in another post the thought that these wholesaler many with very little experience are problem solvers or some sophisticated real estate transaction people is just laughable to me.. a seasoned agent will run circles around most of these folks. And agents that specialize in fixer upper hoarder type houses have their buyers already lined up just like wholesalers trying to put their buyers list together I get asked damn near daily to be put on this guys or that gals list.. I don't go there I don't have the time to wade through the over priced deals and hand hold these folks on how to close a transaction.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Randy Thomason:
Hi Meryl,
Thought I would add my two cents worth. @Lydia R. is spot on and a good representative of the industry, in my opinion. What we do is solve problems. We usually solve problems that realtors and others can't solve or won't solve. Houses that need major repairs are examples of what realtors have a hard time selling because nobody can get a bank loan as is, unless it's an investor who has credit lines or cash of their own.
I look at it this way and train beginners to shift their mindset to this.
If you had a 4 year old child with an inoperable brain tumor and the hospital said sorry he was going die, but before you gave up you researched and found two doctors in another state who had come up with an experimental surgery that has been successful. I am sure you would go. One doctor was older and pioneered the surgery and had done about 20 of them. He charges $60,000 to do it. The other doctor is younger and new but trained under the other doctor and has done 2 surgeries but only charges 30,000. Which doctor are you going to take your child to? If you are like most people I would do whatever I had to do to come up with the 60,000 to make sure my child survived.
We as good wholesalers have specialized knowledge and training and EXPERIENCE to help people solve their issues. No one else is solving the issue for them. Not realtors. Not other family members. Not the government. Just us. We get paid for our expertise. Never feel guilty about getting paid for your services that you have spent time and money learning, just like the doctor did in med school.
I routinely get hugs after closing with a motivated seller. Recently I got and hug and kiss from a lady who had a bad case of Lupus and after 5 delayed closing dates because she couldn't get out of bed on those dates , We got it closed. The morning of closing she called and told me she was going to make she thought. I told her I knew that already and that there was a rumor that Santa had made a surprise visit to the title company and had left some Godiva Truffles for someone. She laughed. When she arrived there was a box of 8 truffles at her position at the table. She wobbled in with her two crutches and sat. Didn't even notice them. Afterwards the title closer told her not to forget her box. She laughed and opened them. She struggled to stand and wobbled to me and hugged me and with tears in her eyes and told me I probably extended her life by at least 5 years by getting the stress of rental property off her hands that she had inherited. The title lady was crying and I had tears too. The title lady ( who was the owner of the company) said afterwards, "Now I get what you do."
We help people that no one else can or will!
I don't buy this for a minute.. good agents can and do all of the above and get paid legally to do it.. what I will agree with you on though is the low value asset is underserved by the real estate brokerage community.. and I understand why you guys do this.. you pick up a wreck of a house in a bad area for 10k and sell it for 30k I get it.. I see the huds.. So yes the real estate community is not going to deal with low value assets.. and if they do they will have a set minimum fee of 2 to 5k I see that often on huds.. So to somewhat agree with you the sharpest agents who know the most and make decent money are not working in the areas most wholesalers work in.. IE tough areas and low price points.. so there is a huge gap there that has allowed this activity to flourish and some pretty nasty unconscionable profits to be made on these sweet little old ladys you described
Let me give you an example I usually wont deal with wholesalers but one contacted me.. about a deal in Charleston were I build new infill.
he wanted 200k for it.. its a tear down.. I agree but then I do what I always do and run my own title.. I don't wait for those attorney to do it. I find a recorded option agreement and power of attorney allowing this guy to buy it for 100k.. so that's a 100k profit being taken from this little old lady and that's what she was totally unsophisticated. So I told the guy my moral compass wont allow me to rip 100k of this ladies equity from her if you want to make 20k I can do that and you give her 180k.. they refused.. so then I see it listed on MLS which again in my state would not be legal.. for 260k and it does not sell.. further I get the title report back and sure enough its in foreclosure and the amount owed is 206k.. so what were these problem solvers doing they had no clue it was in foreclosure that she owed what it was worth as a tear down.. So I said ok I will cash it out this week and give you 2k. they accepted I bought the house tore it down and resold the new construction at 750k.. .and made a quite nice pay day for our team. So to this day I have no clue what these people thought or were doing.. LOL. but I was the problem solver not them.
PS it was the wholesalers who listed the property as the owners not the lady they were buying it from since they could not sell it through their channels they listed it..
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Jay Hinrichs:
@Andrew Hodgson thats because wholesaling is just a moniker just like turnkey is a moniker.. but we know what i means.. wholesaling means assigning contracts.. when in fact a true wholesaler closes on the house then resells what they own.. a broker makes a middle man fee.
the issue is you show me one wholesaler and we will use this interchangeable as assignor.. that just advertises a contract and does not describe the home have a website with pictures of hte homes mass media marketing all sorts of things that is exactly what a realtor does. And working out problems that's laughable most of the folks have zero experience to work anything out.. LOL.. Good brokers have their cash buyers.. I am one..
Good news is that wholesaling seems to be dying out. The guru's aren't pitching it as much these days. It was ridiculous a couple years ago. Hopefully this trend continues.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Randy Thomason:
Hi Meryl,
Thought I would add my two cents worth. @Lydia R. is spot on and a good representative of the industry, in my opinion. What we do is solve problems. We usually solve problems that realtors and others can't solve or won't solve. Houses that need major repairs are examples of what realtors have a hard time selling because nobody can get a bank loan as is, unless it's an investor who has credit lines or cash of their own.
I look at it this way and train beginners to shift their mindset to this.
If you had a 4 year old child with an inoperable brain tumor and the hospital said sorry he was going die, but before you gave up you researched and found two doctors in another state who had come up with an experimental surgery that has been successful. I am sure you would go. One doctor was older and pioneered the surgery and had done about 20 of them. He charges $60,000 to do it. The other doctor is younger and new but trained under the other doctor and has done 2 surgeries but only charges 30,000. Which doctor are you going to take your child to? If you are like most people I would do whatever I had to do to come up with the 60,000 to make sure my child survived.
We as good wholesalers have specialized knowledge and training and EXPERIENCE to help people solve their issues. No one else is solving the issue for them. Not realtors. Not other family members. Not the government. Just us. We get paid for our expertise. Never feel guilty about getting paid for your services that you have spent time and money learning, just like the doctor did in med school.
I routinely get hugs after closing with a motivated seller. Recently I got and hug and kiss from a lady who had a bad case of Lupus and after 5 delayed closing dates because she couldn't get out of bed on those dates , We got it closed. The morning of closing she called and told me she was going to make she thought. I told her I knew that already and that there was a rumor that Santa had made a surprise visit to the title company and had left some Godiva Truffles for someone. She laughed. When she arrived there was a box of 8 truffles at her position at the table. She wobbled in with her two crutches and sat. Didn't even notice them. Afterwards the title closer told her not to forget her box. She laughed and opened them. She struggled to stand and wobbled to me and hugged me and with tears in her eyes and told me I probably extended her life by at least 5 years by getting the stress of rental property off her hands that she had inherited. The title lady was crying and I had tears too. The title lady ( who was the owner of the company) said afterwards, "Now I get what you do."
We help people that no one else can or will!
I don't buy this for a minute.. good agents can and do all of the above and get paid legally to do it.. what I will agree with you on though is the low value asset is underserved by the real estate brokerage community.. and I understand why you guys do this.. you pick up a wreck of a house in a bad area for 10k and sell it for 30k I get it.. I see the huds.. So yes the real estate community is not going to deal with low value assets.. and if they do they will have a set minimum fee of 2 to 5k I see that often on huds.. So to somewhat agree with you the sharpest agents who know the most and make decent money are not working in the areas most wholesalers work in.. IE tough areas and low price points.. so there is a huge gap there that has allowed this activity to flourish and some pretty nasty unconscionable profits to be made on these sweet little old ladys you described
Let me give you an example I usually wont deal with wholesalers but one contacted me.. about a deal in Charleston were I build new infill.
he wanted 200k for it.. its a tear down.. I agree but then I do what I always do and run my own title.. I don't wait for those attorney to do it. I find a recorded option agreement and power of attorney allowing this guy to buy it for 100k.. so that's a 100k profit being taken from this little old lady and that's what she was totally unsophisticated. So I told the guy my moral compass wont allow me to rip 100k of this ladies equity from her if you want to make 20k I can do that and you give her 180k.. they refused.. so then I see it listed on MLS which again in my state would not be legal.. for 260k and it does not sell.. further I get the title report back and sure enough its in foreclosure and the amount owed is 206k.. so what were these problem solvers doing they had no clue it was in foreclosure that she owed what it was worth as a tear down.. So I said ok I will cash it out this week and give you 2k. they accepted I bought the house tore it down and resold the new construction at 750k.. .and made a quite nice pay day for our team. So to this day I have no clue what these people thought or were doing.. LOL. but I was the problem solver not them.
PS it was the wholesalers who listed the property as the owners not the lady they were buying it from since they could not sell it through their channels they listed it..
Yup there are agents who specialize in this stuff. I've sold over $100M of it. All 100% legal & above board. This is what those who are attracted to the concept of wholesaling should be doing. Not all agents drive families around in their Subaru's. There is a 0% you'd ever find me driving a buyer around.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @John Thedford:
There is NOTHING a "wholesaler" can do that an agent cannot do. They love to claim it takes an agent six months to sell a house. Prices sell houses. I found a house on the MLS with issues (owners were part of the issue) and it went under contract in FOUR DAYS. How do I know this? I was the buyer. I purchased it for roughly 20% under listed price because it was full of junk and the owners were downright filthy. Don't believe all the propaganda put out by "wholesalers" -they have a vested interest in pushing their story. You will find agents now "wholesaling" as well as unlicensed brokers "wholesaling". What you will find is a lot of "wholesalers" acting illegally. I turn them in on a regular basis and many have gotten cease and desist letters. laws vary state to state but in most states it is illegal to market properties you don't own unless you are licensed. You will find tons of these guys asking to put you on their buyers lists. They are brokering real estate-bringing buyers and sellers together. Don't confuse that practice with those purchasing and then reselling. Anytime you see a "wholesaler" stating how they can solve problems that an agent cannot, they are simply full of BS and pushing their agenda.
Now--the BIG problem with many of these operators is entering into contracts with no ability nor intention of closing if they cannot find a buyer. They talk about "escape clauses" and often use those though that is simply an excuse to get out of the contract. About a week ago there was a thread on BP where one of these FRAUDS AND SCAMMERS stating the seller wanted to sue them for backing out. When you see "subject to my partners approval" or 30, 45 days "inspection periods" these are typical FRAUDS AND SCAMMERS that entered into the contract under fraudulent reasons. This type of garbage is heavily promoted on BP. As an attorney, no doubt you understand FRAUD BY INDUCEMENT and the damage done to sellers by many of these operators. The state of FL investigators referred to these sellers as "VICTIMS" stating they are often the elderly, people with a poor grasp of the english language, etc. I think the state of FL, referring to them as "victims" says a LOT about the problems these operators are causing to home owners.Amen
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
Originally posted by @James Wise:
Originally posted by @Jay Hinrichs:
@Andrew Hodgson thats because wholesaling is just a moniker just like turnkey is a moniker.. but we know what i means.. wholesaling means assigning contracts.. when in fact a true wholesaler closes on the house then resells what they own.. a broker makes a middle man fee.
the issue is you show me one wholesaler and we will use this interchangeable as assignor.. that just advertises a contract and does not describe the home have a website with pictures of hte homes mass media marketing all sorts of things that is exactly what a realtor does. And working out problems that's laughable most of the folks have zero experience to work anything out.. LOL.. Good brokers have their cash buyers.. I am one..
Good news is that wholesaling seems to be dying out. The guru's aren't pitching it as much these days. It was ridiculous a couple years ago. Hopefully this trend continues.
Try looking on BP> every other thread is "hello I am a new wholesaler", "how do I fill out these contracts", "i have no money but I found a house!", "how do I get out of a contract", etc.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @John Thedford:
Originally posted by @James Wise:
Originally posted by @Jay Hinrichs:
@Andrew Hodgson thats because wholesaling is just a moniker just like turnkey is a moniker.. but we know what i means.. wholesaling means assigning contracts.. when in fact a true wholesaler closes on the house then resells what they own.. a broker makes a middle man fee.
the issue is you show me one wholesaler and we will use this interchangeable as assignor.. that just advertises a contract and does not describe the home have a website with pictures of hte homes mass media marketing all sorts of things that is exactly what a realtor does. And working out problems that's laughable most of the folks have zero experience to work anything out.. LOL.. Good brokers have their cash buyers.. I am one..
Good news is that wholesaling seems to be dying out. The guru's aren't pitching it as much these days. It was ridiculous a couple years ago. Hopefully this trend continues.
Try looking on BP> every other thread is "hello I am a new wholesaler", "how do I fill out these contracts", "i have no money but I found a house!", "how do I get out of a contract", etc.
If there is a silver lining to that it's that the industry appears to be dying & 99.9% of the people who post things like that never go on to do a "deal".
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @James Wise:
Originally posted by @Jay Hinrichs:
@Andrew Hodgson thats because wholesaling is just a moniker just like turnkey is a moniker.. but we know what i means.. wholesaling means assigning contracts.. when in fact a true wholesaler closes on the house then resells what they own.. a broker makes a middle man fee.
the issue is you show me one wholesaler and we will use this interchangeable as assignor.. that just advertises a contract and does not describe the home have a website with pictures of hte homes mass media marketing all sorts of things that is exactly what a realtor does. And working out problems that's laughable most of the folks have zero experience to work anything out.. LOL.. Good brokers have their cash buyers.. I am one..
Good news is that wholesaling seems to be dying out. The guru's aren't pitching it as much these days. It was ridiculous a couple years ago. Hopefully this trend continues.
well one reason for burn out is that 97% of those who say they are going to wholesale never do it.. they burn what little cash they have become more broke and quit.. but as you know being a national funder in most rust belt cities I see them daily on huds so they are still alive and well in the low value asset rental houses I fund.. sometimes there will be 4 of them on one hud making 1k a piece and occasionally some of them make good money.. and there are those that have big operations that do a lot of volume but those are guys that would succeed at any business and they have for real business ALBEIT they violate real estate licensing laws doing it.. but they will spend 30 to 50k a month in marketing.. have robo callers closers that are on staff transaction coordinators.. a for real company.
the lone wolf wholesaler while some carve a niche and do OK or better than OK that's not the norm by any means.. and its those guys gals that post that give others hope they can do it..
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @James Wise:
Originally posted by @Jay Hinrichs:
Originally posted by @Randy Thomason:
Hi Meryl,
Thought I would add my two cents worth. @Lydia R. is spot on and a good representative of the industry, in my opinion. What we do is solve problems. We usually solve problems that realtors and others can't solve or won't solve. Houses that need major repairs are examples of what realtors have a hard time selling because nobody can get a bank loan as is, unless it's an investor who has credit lines or cash of their own.
I look at it this way and train beginners to shift their mindset to this.
If you had a 4 year old child with an inoperable brain tumor and the hospital said sorry he was going die, but before you gave up you researched and found two doctors in another state who had come up with an experimental surgery that has been successful. I am sure you would go. One doctor was older and pioneered the surgery and had done about 20 of them. He charges $60,000 to do it. The other doctor is younger and new but trained under the other doctor and has done 2 surgeries but only charges 30,000. Which doctor are you going to take your child to? If you are like most people I would do whatever I had to do to come up with the 60,000 to make sure my child survived.
We as good wholesalers have specialized knowledge and training and EXPERIENCE to help people solve their issues. No one else is solving the issue for them. Not realtors. Not other family members. Not the government. Just us. We get paid for our expertise. Never feel guilty about getting paid for your services that you have spent time and money learning, just like the doctor did in med school.
I routinely get hugs after closing with a motivated seller. Recently I got and hug and kiss from a lady who had a bad case of Lupus and after 5 delayed closing dates because she couldn't get out of bed on those dates , We got it closed. The morning of closing she called and told me she was going to make she thought. I told her I knew that already and that there was a rumor that Santa had made a surprise visit to the title company and had left some Godiva Truffles for someone. She laughed. When she arrived there was a box of 8 truffles at her position at the table. She wobbled in with her two crutches and sat. Didn't even notice them. Afterwards the title closer told her not to forget her box. She laughed and opened them. She struggled to stand and wobbled to me and hugged me and with tears in her eyes and told me I probably extended her life by at least 5 years by getting the stress of rental property off her hands that she had inherited. The title lady was crying and I had tears too. The title lady ( who was the owner of the company) said afterwards, "Now I get what you do."
We help people that no one else can or will!
I don't buy this for a minute.. good agents can and do all of the above and get paid legally to do it.. what I will agree with you on though is the low value asset is underserved by the real estate brokerage community.. and I understand why you guys do this.. you pick up a wreck of a house in a bad area for 10k and sell it for 30k I get it.. I see the huds.. So yes the real estate community is not going to deal with low value assets.. and if they do they will have a set minimum fee of 2 to 5k I see that often on huds.. So to somewhat agree with you the sharpest agents who know the most and make decent money are not working in the areas most wholesalers work in.. IE tough areas and low price points.. so there is a huge gap there that has allowed this activity to flourish and some pretty nasty unconscionable profits to be made on these sweet little old ladys you described
Let me give you an example I usually wont deal with wholesalers but one contacted me.. about a deal in Charleston were I build new infill.
he wanted 200k for it.. its a tear down.. I agree but then I do what I always do and run my own title.. I don't wait for those attorney to do it. I find a recorded option agreement and power of attorney allowing this guy to buy it for 100k.. so that's a 100k profit being taken from this little old lady and that's what she was totally unsophisticated. So I told the guy my moral compass wont allow me to rip 100k of this ladies equity from her if you want to make 20k I can do that and you give her 180k.. they refused.. so then I see it listed on MLS which again in my state would not be legal.. for 260k and it does not sell.. further I get the title report back and sure enough its in foreclosure and the amount owed is 206k.. so what were these problem solvers doing they had no clue it was in foreclosure that she owed what it was worth as a tear down.. So I said ok I will cash it out this week and give you 2k. they accepted I bought the house tore it down and resold the new construction at 750k.. .and made a quite nice pay day for our team. So to this day I have no clue what these people thought or were doing.. LOL. but I was the problem solver not them.
PS it was the wholesalers who listed the property as the owners not the lady they were buying it from since they could not sell it through their channels they listed it..
Yup there are agents who specialize in this stuff. I've sold over $100M of it. All 100% legal & above board. This is what those who are attracted to the concept of wholesaling should be doing. Not all agents drive families around in their Subaru's. There is a 0% you'd ever find me driving a buyer around.
Every market has their investment specialist brokers.. its cracking their code that can be tough.. IE they have their clients they feed their deals to.. I know I am one I get first swings at many things around the country.. :)
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
Originally posted by @James Wise:
Originally posted by @Jay Hinrichs:
Originally posted by @Randy Thomason:
Hi Meryl,
Thought I would add my two cents worth. @Lydia R. is spot on and a good representative of the industry, in my opinion. What we do is solve problems. We usually solve problems that realtors and others can't solve or won't solve. Houses that need major repairs are examples of what realtors have a hard time selling because nobody can get a bank loan as is, unless it's an investor who has credit lines or cash of their own.
I look at it this way and train beginners to shift their mindset to this.
If you had a 4 year old child with an inoperable brain tumor and the hospital said sorry he was going die, but before you gave up you researched and found two doctors in another state who had come up with an experimental surgery that has been successful. I am sure you would go. One doctor was older and pioneered the surgery and had done about 20 of them. He charges $60,000 to do it. The other doctor is younger and new but trained under the other doctor and has done 2 surgeries but only charges 30,000. Which doctor are you going to take your child to? If you are like most people I would do whatever I had to do to come up with the 60,000 to make sure my child survived.
We as good wholesalers have specialized knowledge and training and EXPERIENCE to help people solve their issues. No one else is solving the issue for them. Not realtors. Not other family members. Not the government. Just us. We get paid for our expertise. Never feel guilty about getting paid for your services that you have spent time and money learning, just like the doctor did in med school.
I routinely get hugs after closing with a motivated seller. Recently I got and hug and kiss from a lady who had a bad case of Lupus and after 5 delayed closing dates because she couldn't get out of bed on those dates , We got it closed. The morning of closing she called and told me she was going to make she thought. I told her I knew that already and that there was a rumor that Santa had made a surprise visit to the title company and had left some Godiva Truffles for someone. She laughed. When she arrived there was a box of 8 truffles at her position at the table. She wobbled in with her two crutches and sat. Didn't even notice them. Afterwards the title closer told her not to forget her box. She laughed and opened them. She struggled to stand and wobbled to me and hugged me and with tears in her eyes and told me I probably extended her life by at least 5 years by getting the stress of rental property off her hands that she had inherited. The title lady was crying and I had tears too. The title lady ( who was the owner of the company) said afterwards, "Now I get what you do."
We help people that no one else can or will!
I don't buy this for a minute.. good agents can and do all of the above and get paid legally to do it.. what I will agree with you on though is the low value asset is underserved by the real estate brokerage community.. and I understand why you guys do this.. you pick up a wreck of a house in a bad area for 10k and sell it for 30k I get it.. I see the huds.. So yes the real estate community is not going to deal with low value assets.. and if they do they will have a set minimum fee of 2 to 5k I see that often on huds.. So to somewhat agree with you the sharpest agents who know the most and make decent money are not working in the areas most wholesalers work in.. IE tough areas and low price points.. so there is a huge gap there that has allowed this activity to flourish and some pretty nasty unconscionable profits to be made on these sweet little old ladys you described
Let me give you an example I usually wont deal with wholesalers but one contacted me.. about a deal in Charleston were I build new infill.
he wanted 200k for it.. its a tear down.. I agree but then I do what I always do and run my own title.. I don't wait for those attorney to do it. I find a recorded option agreement and power of attorney allowing this guy to buy it for 100k.. so that's a 100k profit being taken from this little old lady and that's what she was totally unsophisticated. So I told the guy my moral compass wont allow me to rip 100k of this ladies equity from her if you want to make 20k I can do that and you give her 180k.. they refused.. so then I see it listed on MLS which again in my state would not be legal.. for 260k and it does not sell.. further I get the title report back and sure enough its in foreclosure and the amount owed is 206k.. so what were these problem solvers doing they had no clue it was in foreclosure that she owed what it was worth as a tear down.. So I said ok I will cash it out this week and give you 2k. they accepted I bought the house tore it down and resold the new construction at 750k.. .and made a quite nice pay day for our team. So to this day I have no clue what these people thought or were doing.. LOL. but I was the problem solver not them.
PS it was the wholesalers who listed the property as the owners not the lady they were buying it from since they could not sell it through their channels they listed it..
Yup there are agents who specialize in this stuff. I've sold over $100M of it. All 100% legal & above board. This is what those who are attracted to the concept of wholesaling should be doing. Not all agents drive families around in their Subaru's. There is a 0% you'd ever find me driving a buyer around.
Sure James. They don't make a four seater Ferrari!
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @John Thedford:
Originally posted by @James Wise:
Originally posted by @Jay Hinrichs:
Originally posted by @Randy Thomason:
Hi Meryl,
Thought I would add my two cents worth. @Lydia R. is spot on and a good representative of the industry, in my opinion. What we do is solve problems. We usually solve problems that realtors and others can't solve or won't solve. Houses that need major repairs are examples of what realtors have a hard time selling because nobody can get a bank loan as is, unless it's an investor who has credit lines or cash of their own.
I look at it this way and train beginners to shift their mindset to this.
If you had a 4 year old child with an inoperable brain tumor and the hospital said sorry he was going die, but before you gave up you researched and found two doctors in another state who had come up with an experimental surgery that has been successful. I am sure you would go. One doctor was older and pioneered the surgery and had done about 20 of them. He charges $60,000 to do it. The other doctor is younger and new but trained under the other doctor and has done 2 surgeries but only charges 30,000. Which doctor are you going to take your child to? If you are like most people I would do whatever I had to do to come up with the 60,000 to make sure my child survived.
We as good wholesalers have specialized knowledge and training and EXPERIENCE to help people solve their issues. No one else is solving the issue for them. Not realtors. Not other family members. Not the government. Just us. We get paid for our expertise. Never feel guilty about getting paid for your services that you have spent time and money learning, just like the doctor did in med school.
I routinely get hugs after closing with a motivated seller. Recently I got and hug and kiss from a lady who had a bad case of Lupus and after 5 delayed closing dates because she couldn't get out of bed on those dates , We got it closed. The morning of closing she called and told me she was going to make she thought. I told her I knew that already and that there was a rumor that Santa had made a surprise visit to the title company and had left some Godiva Truffles for someone. She laughed. When she arrived there was a box of 8 truffles at her position at the table. She wobbled in with her two crutches and sat. Didn't even notice them. Afterwards the title closer told her not to forget her box. She laughed and opened them. She struggled to stand and wobbled to me and hugged me and with tears in her eyes and told me I probably extended her life by at least 5 years by getting the stress of rental property off her hands that she had inherited. The title lady was crying and I had tears too. The title lady ( who was the owner of the company) said afterwards, "Now I get what you do."
We help people that no one else can or will!
I don't buy this for a minute.. good agents can and do all of the above and get paid legally to do it.. what I will agree with you on though is the low value asset is underserved by the real estate brokerage community.. and I understand why you guys do this.. you pick up a wreck of a house in a bad area for 10k and sell it for 30k I get it.. I see the huds.. So yes the real estate community is not going to deal with low value assets.. and if they do they will have a set minimum fee of 2 to 5k I see that often on huds.. So to somewhat agree with you the sharpest agents who know the most and make decent money are not working in the areas most wholesalers work in.. IE tough areas and low price points.. so there is a huge gap there that has allowed this activity to flourish and some pretty nasty unconscionable profits to be made on these sweet little old ladys you described
Let me give you an example I usually wont deal with wholesalers but one contacted me.. about a deal in Charleston were I build new infill.
he wanted 200k for it.. its a tear down.. I agree but then I do what I always do and run my own title.. I don't wait for those attorney to do it. I find a recorded option agreement and power of attorney allowing this guy to buy it for 100k.. so that's a 100k profit being taken from this little old lady and that's what she was totally unsophisticated. So I told the guy my moral compass wont allow me to rip 100k of this ladies equity from her if you want to make 20k I can do that and you give her 180k.. they refused.. so then I see it listed on MLS which again in my state would not be legal.. for 260k and it does not sell.. further I get the title report back and sure enough its in foreclosure and the amount owed is 206k.. so what were these problem solvers doing they had no clue it was in foreclosure that she owed what it was worth as a tear down.. So I said ok I will cash it out this week and give you 2k. they accepted I bought the house tore it down and resold the new construction at 750k.. .and made a quite nice pay day for our team. So to this day I have no clue what these people thought or were doing.. LOL. but I was the problem solver not them.
PS it was the wholesalers who listed the property as the owners not the lady they were buying it from since they could not sell it through their channels they listed it..
Yup there are agents who specialize in this stuff. I've sold over $100M of it. All 100% legal & above board. This is what those who are attracted to the concept of wholesaling should be doing. Not all agents drive families around in their Subaru's. There is a 0% you'd ever find me driving a buyer around.
Sure James. They don't make a four seater Ferrari!
Jim drives a Panamara .. that has 4 seats..
- New to Real Estate · Boston, MA · Member since 2018 · 16 posts · 3 votes7y
Any veterans willing to exchange contact info and help me through the wholesaling process a few times. I need to make this work and am getting conflicting advice.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @John Thedford:
Originally posted by @James Wise:
Originally posted by @Jay Hinrichs:
Originally posted by @Randy Thomason:
Hi Meryl,
Thought I would add my two cents worth. @Lydia R. is spot on and a good representative of the industry, in my opinion. What we do is solve problems. We usually solve problems that realtors and others can't solve or won't solve. Houses that need major repairs are examples of what realtors have a hard time selling because nobody can get a bank loan as is, unless it's an investor who has credit lines or cash of their own.
I look at it this way and train beginners to shift their mindset to this.
If you had a 4 year old child with an inoperable brain tumor and the hospital said sorry he was going die, but before you gave up you researched and found two doctors in another state who had come up with an experimental surgery that has been successful. I am sure you would go. One doctor was older and pioneered the surgery and had done about 20 of them. He charges $60,000 to do it. The other doctor is younger and new but trained under the other doctor and has done 2 surgeries but only charges 30,000. Which doctor are you going to take your child to? If you are like most people I would do whatever I had to do to come up with the 60,000 to make sure my child survived.
We as good wholesalers have specialized knowledge and training and EXPERIENCE to help people solve their issues. No one else is solving the issue for them. Not realtors. Not other family members. Not the government. Just us. We get paid for our expertise. Never feel guilty about getting paid for your services that you have spent time and money learning, just like the doctor did in med school.
I routinely get hugs after closing with a motivated seller. Recently I got and hug and kiss from a lady who had a bad case of Lupus and after 5 delayed closing dates because she couldn't get out of bed on those dates , We got it closed. The morning of closing she called and told me she was going to make she thought. I told her I knew that already and that there was a rumor that Santa had made a surprise visit to the title company and had left some Godiva Truffles for someone. She laughed. When she arrived there was a box of 8 truffles at her position at the table. She wobbled in with her two crutches and sat. Didn't even notice them. Afterwards the title closer told her not to forget her box. She laughed and opened them. She struggled to stand and wobbled to me and hugged me and with tears in her eyes and told me I probably extended her life by at least 5 years by getting the stress of rental property off her hands that she had inherited. The title lady was crying and I had tears too. The title lady ( who was the owner of the company) said afterwards, "Now I get what you do."
We help people that no one else can or will!
I don't buy this for a minute.. good agents can and do all of the above and get paid legally to do it.. what I will agree with you on though is the low value asset is underserved by the real estate brokerage community.. and I understand why you guys do this.. you pick up a wreck of a house in a bad area for 10k and sell it for 30k I get it.. I see the huds.. So yes the real estate community is not going to deal with low value assets.. and if they do they will have a set minimum fee of 2 to 5k I see that often on huds.. So to somewhat agree with you the sharpest agents who know the most and make decent money are not working in the areas most wholesalers work in.. IE tough areas and low price points.. so there is a huge gap there that has allowed this activity to flourish and some pretty nasty unconscionable profits to be made on these sweet little old ladys you described
Let me give you an example I usually wont deal with wholesalers but one contacted me.. about a deal in Charleston were I build new infill.
he wanted 200k for it.. its a tear down.. I agree but then I do what I always do and run my own title.. I don't wait for those attorney to do it. I find a recorded option agreement and power of attorney allowing this guy to buy it for 100k.. so that's a 100k profit being taken from this little old lady and that's what she was totally unsophisticated. So I told the guy my moral compass wont allow me to rip 100k of this ladies equity from her if you want to make 20k I can do that and you give her 180k.. they refused.. so then I see it listed on MLS which again in my state would not be legal.. for 260k and it does not sell.. further I get the title report back and sure enough its in foreclosure and the amount owed is 206k.. so what were these problem solvers doing they had no clue it was in foreclosure that she owed what it was worth as a tear down.. So I said ok I will cash it out this week and give you 2k. they accepted I bought the house tore it down and resold the new construction at 750k.. .and made a quite nice pay day for our team. So to this day I have no clue what these people thought or were doing.. LOL. but I was the problem solver not them.
PS it was the wholesalers who listed the property as the owners not the lady they were buying it from since they could not sell it through their channels they listed it..
Yup there are agents who specialize in this stuff. I've sold over $100M of it. All 100% legal & above board. This is what those who are attracted to the concept of wholesaling should be doing. Not all agents drive families around in their Subaru's. There is a 0% you'd ever find me driving a buyer around.
Sure James. They don't make a four seater Ferrari!
Jim drives a Panamara .. that has 4 seats..
911 carrera S cabriolet here!
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